Merchandise export earnings resilient in May

• Exports recovered by 10.7% MoM to US $ 884.2mn and by 50.71% YoY, compared to US $ 586.7mn in May 2020
• May export figure slightly below pre-pandemic export earnings of US $ 961mn
• Apparel exports grew by 69.48% YoY to US $ 370.87mn; tea by 0.88% YoY and 37.8% MoM to US $ 109.23mn
• USA retained top spot as single largest market for SL’s exports, recovering by 46.46% YoY to US $ 213.11mn

Despite the pandemic-related travel restrictions, Sri Lanka’s merchandise exports remained resilient in May, as exports recovered by 10.7 percent month-on-month (MoM) to US $ 884.2 million in the month from a five-month low in April, due to the initial shocks from the third COVID-19 wave, according to the Export Development Board (EDB). 

On a year-on-year (YoY) basis, exports recovered by 50.71 percent in the month, compared to the US $ 586.7 million export figure recorded in May last year, due to the impacts of the first COVID-19 wave when the country was in a lockdown and key export markets were also under similar mobility restrictions.  However, the May export figure was still slightly below the pre-pandemic export earnings of US $ 961 million.

“We are happy to see that the export levels are reaching fast to the pre-COVID-19 levels, despite the continuous multiple challenges faced by our exporters with intermittent travel restrictions and local area isolations,” EDB Chairman Suresh de Mel said.

In the five-month period, the exports recovered by 32.61 percent YoY to US $ 4.58 billion, inching closer to the pre-pandemic merchandise export level of US $ 4.84 billion recorded in the same period of 2019. However, the export segments such as rubber-based products, coconut-based products, electronics and electronic components and spices recorded earnings above the pre-pandemic levels in the period.  

In May, apparel exports grew by 69.48 percent YoY to US $ 370.87 million, recovering from the record low exports in May last year, accounting for 45 percent of total merchandise exports in the month. On a MoM basis, apparel exports earnings increased by US $ 5 million in May compared to the previous month.

In the five-month period, apparel exports topped the US $ 2 billion mark by growing over 34 percent YoY.
Tea exports grew by 0.88 percent YoY and 37.8 percent MoM to US $ 109.23 million in May, constituting for 11.5 percent of total merchandise exports in the month. 

Overall, tea exports during the five-month period recorded a 15.30 percent YoY growth to reach US $ 526.62 million.

The export income from rubber-based products rose by 78.12 percent YoY and 40.8 percent MoM to reach US $ 91.18 million in May, driven by the high demand for industrial and surgical gloves and pneumatic and retreated rubber tyres and tubes. Overall, the rubber-based export products accounted for 9.3 percent of total merchandise exports in the month.

Consequently, the export earnings from rubber-based products increased by 51.43 percent YoY to US $ 424.47 million during the first four months of 2021.

Similarly, earnings from coconut-based exports also grew by 28.78 percent YoY to US $ 66.71 million in May and accounting for 7 percent of total merchandise exports in the month. In the five-month period, coconut-based exports increased by over 46 percent YoY to US $ 317.19 million.

Meanwhile, the earnings from electrical and electronic component (EEC) exports rose by 62.47 percent YoY to US $ 35.19 million and the cumulative earnings stood at US $ 164.28 million for the five-month period.  The export earnings from spices and essential oils in May also grew by over 30 percent to US $ 25.24 million, with overall earnings in the five-month period doubling to US $ 162.01 million.

In the month, diamond, gems and jewellery was the fastest growing export category, which grew 114.67 percent YoY to US $ 14.19 million.

In May, except for vegetable exports, all other major exports increased by modest to substantial levels, due to the low base effect in May 2020.

The USA retained its top spot as the single largest market for Sri Lanka’s exports in the month, as exports to the country recovered by 46.46 percent YoY to US $ 213.11 million, accounting for 24.1 percent of Sri Lanka’s merchandise export share in May.

On a similar note, exports to the UK and India also recovered by 69.85 percent YoY and 45.17 percent YoY to US $ 72.29 million and US $ 55.28 million, respectively in May.

The European Union (EU excluding the UK) fell to the second position among the largest markets for Sri Lankan-made goods in May, even though exports to the EU recovered by 63.03 percent YoY to US $ 210.05 million in the month. However, the EU was still the largest market for Sri Lankan goods in the five-month period, marginally ahead of the USA, absorbing US $ 1,135.99 million worth of Sri Lankan exports.

In May, Italy was the fastest growing export market for Sri Lankan merchandise, as exports to the country recovered by a record 123.6 percent YoY to US $ 40.45 million.

Meanwhile, service exports were estimated to have grown by 16.87 percent YoY to US $ 1.19 billion, which include ICT/BPM, construction, financial services and transport and logistics service exports.